Housing Market Stalls, but Renters will See a ‘Silver Lining’
- Oct 06, 2011
Denver’s home market is far from the recovery everyone wants. The Standard & Poor’s/Case-Shiller Home Price Index released recently shows that prices in July stalled compared to June’s numbers. In fact, out of the 20 metro areas recorded in the Index, Denver is one of only three markets that have not posted steady increases in home prices. Las Vegas and Phoenix have recorded decreases in home prices. Denver’s have remained at the same level.
Denver prices stand at 2.1 percent lower than that same month a year ago. Q2 posted numbers 1.6 percent higher than the first quarter but 2.5 percent lower than that same period a year earlier. The Index shows 125.97 with the value of 100 being considered for January 2000, meaning home prices appreciated almost 26 percent since 11 years ago, The Denver Post reports.
The market is still ailing, but there are sectors of real estate and certain consumers that will benefit from it. The decrease in employment and anemic housing prices reflect a grim situation, but renters are faring much better in this market. In fact, the increasing number of available rental units is set to drive prices into the ground, making it extremely easy to find a nicely priced unit.
The Denver Post recently reported that the local rental vacancy rate for June stood at a whopping 28 percent. This number is higher than any other recorded numbers, the Economic Council of Eagle County revealed in its latest economic report.